The shutdown of Builders’ Merchant Company marks a notable end to almost a century of service in the construction supply industry.
- Founded in 1928, the company faced financial difficulties, leading to the appointment of insolvency specialists Begbies Traynor as administrators.
- Efforts to sell the company through accelerated mergers and acquisitions were unsuccessful, resulting in the redundancy of all 26 employees.
- The administrators are now focused on selling the company’s freehold property and assets to maximise returns for creditors.
- Joint administrator Andrew Mackenzie highlighted the challenging conditions in the construction industry as a significant factor in the company’s collapse.
The Builders’ Merchant Company (BMC), a well-established business in Scunthorpe since 1928, has collapsed just shy of its centenary. This closure signifies a significant end to its operations as Lincolnshire’s largest independent timber and building supplies provider.
The appointment of administrators from Begbies Traynor follows a recent winding-up petition. Efforts to find a buyer through an accelerated mergers and acquisitions process failed, leading to this unfortunate closure.
As a result, all 26 employees of the company have been made redundant, reflecting the severe impact on the workforce. The joint administrators are now working diligently to sell the freehold property and assets in order to maximise the financial return for creditors.
Andrew Mackenzie, representing the administrators, pointed out the adverse conditions plaguing the construction industry, contributing to this difficult situation. “The construction industry continues to face extremely challenging conditions,” he noted, underscoring the broader economic challenges affecting suppliers like BMC.
Founded in 1928, the BMC expanded its reach between 2016 and 2019 by opening branches in Hull, Rotherham, and Goole. Despite these expansions, the company could not withstand the sustained financial pressures.
The closure of Builders’ Merchant Company underscores the ongoing challenges within the construction industry and their profound impact on its suppliers.
